Bodily injury

Business

Employee

Insured

Insured location

Motor vehicle

Occurrence

Property damage

Residence employee

Residence premises

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The Named Insured

In this policy, "you" and "your" refer to the "named insured" shown in the Declarations and the spouse if a resident of the same household. "We," "us" and "our" refer to the Company providing this insurance. In addition, certain words and phrases are defined as follows:

Analysis

Throughout the policy when the words "you" and "your" appear, they will always mean the named insured—that is, the person whose name appears on the declarations page—and that person's spouse, if residing in the same household. "You," or the "named insured" is altogether different from "insured." The terms are never used interchangeably.

Aircraft and Other Conveyances' Liability

1″Aircraft Liability", "Hovercraft Liability", "Motor Vehicle Liability" and "Watercraft Liability", subject to the provisions in b. below, mean the following:

a.Liability for "bodily injury" or "property damage" arising out of the:

(1)Ownership of such vehicle or craft by an "insured",

(2)Maintenance, occupancy, operation, use, loading or unloading of such vehicle or craft by any person;

(3)Entrustment of such vehicle or craft by an "insured" to any person;

(4)Failure to supervise or negligent supervision of any person involving such vehicle or craft by an insured; and

(5)Vicarious liability, whether or not imposed by law, for the actions of a child or minor involving such vehicle or craft.

b. For the purpose of this definition:

(1)Aircraft means any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo;

(2)Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles; and

(3)Watercraft means a craft principally designed to be propelled on or in water by wind, engine power or electric motor; and

(4)Motor vehicle means a "motor vehicle" as defined in 7. below.

Analysis

The definition for aircraft, hovercraft, motor vehicle, and watercraft liability incorporates "occupancy" into the list of activities that will not be covered with regard to certain conveyances. This seems harsh, since an insured could occupy an excluded aircraft and inadvertently bump the wheel, causing the aircraft to plow into another plane parked nearby. For example, at air shows people are often allowed to climb into planes for a look. Does this constitute "use"? Probably not. Does this constitute "occupancy"? Yes. There would be no coverage, which there was under the 1991 forms.